The Origins of Management

GreggU

28 Apr 201903:32

Summary

TLDRThis script traces the evolution of management from its non-existence 125 years ago to its critical role in today's business world. It highlights the historical shift from self-sufficient artisans to mass production during the industrial revolution, necessitating managerial coordination. The transition from home and farm-based work to large organizations with specialized tasks led to the birth of management as a field of study, with modern challenges like emails and meetings, and the development of academic resources to address management inquiries.

Takeaways

📚 Management as a field of study is relatively new, not existing 125 years ago.
🏭 The industrial revolution (1750-1900) was a turning point for the nature of work and the need for management.
👷‍♂️ Unskilled laborers operating machines replaced skilled artisans, facilitated by the availability of power from steam engines and electricity.
🔧 The division of labor led to the specialization of tasks in mass production, which required managers for coordination.
🚗 The shift from artisanal production to assembly lines marked a significant change in the organization of work.
🌾 Historically, most people worked in homes or on farms, with no need for commuting or management.
🏡 In 1720, 80% of the population in England lived and worked in the countryside.
🌾 By 1870, two-thirds of Americans earned their living from agriculture, indicating a predominantly agrarian society.
👥 Small, self-organized work groups did not require management, as there were no commutes, bosses, or common buildings.
📈 Productivity increased dramatically in companies that understood and implemented the new production systems.
🏢 Jobs moved from fields and homes to large formal organizations, necessitating the rise of management roles.
📚 Before 1800, business education was limited to basic bookkeeping and secretarial skills, with no focus on management.

Q & A

When did management jobs and careers start to become significant in the business world?
-Management jobs and careers started to become significant in the business world around the past few centuries, with systematic changes in the nature of work and organizations creating a compelling need for managers.
What were the seeds of today's management ideas found in?
-The seeds of today's management ideas can be found throughout history, but it wasn't until the past few centuries that these ideas became more prominent and systematic.
How has the design of jobs and organizations evolved over the past 500 years?
-The design of jobs and organizations has changed dramatically over the past 500 years, with a shift from people working in homes or on farms to large formal organizations and the advent of mass production.
What percentage of the population in England lived and worked in the country in 1720?
-In 1720, almost 80% of the 5.5 million people in England lived and worked in the country.
What was the primary source of income for Americans around 1870?
-As recently as 1870, two-thirds of Americans earned their living from agriculture.
What significant changes occurred during the Industrial Revolution between 1750 and 1900?
-During the Industrial Revolution, unskilled laborers running machines began to replace highly paid skilled artisans, made possible by the availability of power from steam engines and later electricity, as well as numerous related inventions.
How did the new production system during the Industrial Revolution differ from the work of artisans?
-The new production system was characterized by the division of labor, where each worker performed separate, highly specialized tasks as part of a mass production process, as opposed to artisans who made entire goods by themselves by hand.
What role did managers play in the new production system?
-Managers were needed to coordinate the different parts of the production system and optimize its overall performance, leading to a significant increase in productivity.
What was the state of business education before 1800 regarding management?
-Before 1800, business educators taught only basic bookkeeping and secretarial skills, and no one published books or articles on management.
How can one find information on management today compared to the past?
-Today, if you have a question about management, you can turn to dozens of academic journals for information, unlike in the past when such resources were not available.
What are some of the characteristics of today's working world mentioned in the script?
-Today's working world is characterized by working from 8:00 a.m. to 5:00 p.m., coffee breaks, lunch hours, crushing rush hour traffic, endless emails, and non-stop meetings.

Outlines

00:00

📚 Evolution of Management in the Business World

This paragraph discusses the historical development of management as a field. It notes that management jobs and careers did not exist 125 years ago and that management was not a field of study. The paragraph highlights the transformation of work and organizations over the past centuries, which led to the necessity of managers. It contrasts the modern working world, characterized by structured schedules and intense work environments, with the historical context where work was often conducted in homes or on farms without the need for management. The industrial revolution is identified as a pivotal period that saw the emergence of mass production and the division of labor, necessitating the role of managers to coordinate and optimize production systems.

Mindmap

Keywords

💡Management

Management refers to the process of overseeing and making decisions to ensure the effective and efficient operation of an organization. In the video, it is highlighted that management has become an integral part of the business world, with its roots and evolution being traced back to the industrial revolution and the systematic changes in work and organizations.

💡Industrial Revolution

The Industrial Revolution is a period of significant technological and economic change that began in the late 18th century. The script mentions this era as a turning point where jobs and organizations changed dramatically, leading to the rise of unskilled laborers operating machines and the division of labor, which in turn necessitated the need for managers.

💡Division of Labor

Division of labor is the process of breaking down work into separate, specialized tasks to be performed by different individuals. The video script describes how this concept was a key factor in the birth of mass production, where workers performed highly specialized tasks as part of a larger production system.

💡Mass Production

Mass production is a production method that allows for the manufacture of large quantities of standardized goods efficiently. The script illustrates this concept by describing how the assembly lines moved work to stationary workers, who focused on performing one small task repeatedly, leading to increased productivity.

💡Assembly Lines

Assembly lines are production processes in which parts of a product are added in a sequential manner at different stations. The video script uses the term to describe the innovation that moved work to stationary workers, allowing for a more efficient and repetitive task performance, which was a hallmark of the industrial revolution.

💡Productivity

Productivity refers to the efficiency with which goods or services are produced. The video emphasizes how companies that understood and implemented the concept of mass production and division of labor saw a significant increase in productivity, making them more competitive.

💡Organizations

Organizations are structured groups of people working together to achieve a common goal. The script discusses how the nature of organizations has evolved from small self-organized work groups to large formal organizations where hundreds or thousands of people work under one roof, necessitating the role of managers.

💡Managers

Managers are individuals responsible for coordinating and overseeing the work of a group of employees in an organization. The video script explains that as organizations grew in size and complexity, the need for managers to coordinate different parts of the production system and optimize its overall performance became essential.

💡Bookkeeping

Bookkeeping is the recording of financial transactions, including sales, purchases, and payments. The script mentions that before 1800, business educators focused on teaching basic bookkeeping and secretarial skills, indicating the limited scope of business education at the time.

💡Academia

Academia refers to the world of higher education and research. The video script contrasts the past, where there were no books or articles on management, with the present, where numerous academic journals are available for those seeking knowledge on management topics.

💡Work Commute

Work commute refers to the travel between one's home and place of work. The script notes that for most of human history, people did not commute to work, as work typically occurred in homes or on farms, highlighting a significant shift in the way work is conducted in modern times.

Highlights

Management as a field of study and career did not exist 125 years ago.

The importance of managers and management in the business world has significantly grown over time.

Seeds of modern management ideas can be traced back throughout history.

Systematic changes in work and organizations in the last few centuries necessitated the need for managers.

Traditional work patterns included working from home or on farms without commuting.

In 1720, 80% of England's population lived and worked in rural areas.

By 1870, two-thirds of Americans earned a living from agriculture.

Small self-organized work groups operated without bosses or commutes, reducing the need for management.

The Industrial Revolution (1750-1900) saw dramatic changes in jobs and organizations.

Unskilled laborers operating machines replaced skilled artisans, facilitated by the availability of power.

The division of labor led to the specialization of tasks in the new production system.

Mass production emerged with assembly lines moving work to stationary workers.

Managers became essential to coordinate and optimize the production system's performance.

Productivity increased significantly in companies that adopted the new production methods.

Before 1800, business education focused only on basic bookkeeping and secretarial skills.

There were no books or articles on management published before the 19th century.

Today, numerous academic journals are available for management inquiries.